Three-Month Resistance Zone Overcome
The six-month chart of the Canadian uranium company Paladin Energy shows a doubling of the share price during the summer months. From mid-year, for approximately three months, the price did not exceed the gray resistance line at just over 8 Canadian dollars. At the end of September, with significantly higher trading volumes, it successfully broke this line and advanced to 9 CAD.
Two blue uptrend lines remain intact, and both moving average lines are showing increasingly positive signs. The 200-day line is now rising again (though minimally so far), and three weeks ago, the 100-day line, with its continuous ascent that began in August, managed to cross above the 200-day line, thereby triggering a buy signal from these indicators.
The MACD already achieved such a signal in mid-August (the blue line crossing the red line upwards) – it weakened somewhat in the last four weeks, but ultimately no sell signal has been indicated so far. The trend confirmer continues to run clearly in the positive range above 100, and the Chaikin Money Flow has also been almost exclusively in the green zone since the end of August, which can be interpreted as a permanent inflow of capital into the stock. The momentum of the uptrend is not excessively strong – the Overbought/Oversold indicator is at 0.8, a range where it has spent most of the observation period. Only in June was a value of 2.0 reached at one point, which according to the theory of this indicator is considered overbought.
